Where you choose to retire could actually be a major deciding factor on whether you face poverty in retirement, according to a new report by financial services company SunLife. While London was found to be one of the harshest areas for retirees, the North East and Northern Ireland also proved to be financially strained when it comes to retirement. The Life Well Spent report found some big regional differences, with Mark Screeton, CEO of financial services company SunLife, noting: “Our research shows a clear ‘postcode lottery’ when it comes to retirement, where people’s ability to enjoy later life appears to be impacted by where they live.

“Whether it is mortgage repayments dragging into retirement or higher levels of consumer debt, older people in some areas are facing greater financial concerns than others. In London particularly there seems to be a ‘perfect storm’ of low homeownership, high debt, below-average income, and financial anxiety, all at a time in life when many would hope to feel more secure.”

The survey of 2,000 people aged 50 and over found that in general, 48% are in debt. But in London, this figure stands at 51% and rises to 52% in South East England.

London faltered in a number of areas, with 56% citing cost of living as their biggest stress and four in 10 are worried about running out of money. A fifth of those nearing retirement here also say outstanding debts are a major worry.

Despite the significantly higher living costs, the capital also has one of the lowest incomes for this age group at around £31,164 annually compared to Scotland’s £31,399.

Across the UK, one in seven over 50s are still paying off their mortgage. But in Northern Ireland, this increases to one in five.

Over 50s in Northern Ireland are also the most concerned about retirement finances with 74% worried about how they’ll make ends meet.

In comparison, 24% of over 50s in the North East claimed they have no financial concerns at all. Northern Ireland also had the most over 50s with private pensions, 83%.

Meanwhile, 30% of over 50s in the North West of England have no private pension savings at all. This region was also found to have average income under £25,000 for this age group.

A total of 19% of over 50s in the North West are still paying off their mortgages as they creep closer to retirement. This is followed closely by Yorkshire and East Anglia, both with 16% still forking out on average £887 a month.

This can quickly eat into already tight retirement budgets, especially in areas where income levels remain low or debt levels are high. For example, the average mortgage payment for over 50s in London is £1,230.